Salem Retirement Board Supplemental Regulations

MEMBERSHIP:

Approved: December 8, 2011:
A. Employees of all member units of the Salem Retirement System who are regularly employed in a permanent position for a minimum of 20 hours per week and who earn a minimum of $5,000 per year must become members of the System.

B. Employees of all units of the Salem Retirement System who are provisional, seasonal, or temporary, and who are regularly employed in a position for a minimum of 20 hours per week for a period of six consecutive months, and who earn a minimum of $5,000 per year, must become members of the system at the conclusion of the six-month period. Such member shall be allowed to purchase prior non-membership service.

C. Employees of all member units of the Salem Retirement System who are employed less than 20 hours per week, are ineligible for membership.

D. Employees and appointed officials of all member units of the Salem Retirement System who earn less than $5,000 per year are ineligible for membership.

E. Employees who do not qualify for membership in the Salem Retirement system and later become members in another Chapter 32 retirement system and then seek to "buyback" their prior part-time service, Salem Retirement will not accept liability for this service.

CREDITABLE SERVICE:

Approved: December 8, 2011:

A. Members of the Salem Retirement System who earn less than $5,000 per year and who established membership prior to July 1, 2009 shall continue to be members of the system. The regular compensation of such member shall be subject to retirement withholdings, but such member shall not accrue creditable service after July 1, 2009, except that such member who on said date was serving in an elected or appointed term of office or employment shall continue to be credited with service until the expiration of his term of office or employment, or until July 1, 2012, whichever first occurs.

B. Members of the Salem Retirement System shall be credited with one year of service for each year of employment of not less than 20 hours per week, or yearly proportion thereof. If the members' hours of employment fall below 20 hours per week, the member shall be credited with one-half year of creditable service, or yearly proportion thereof.

C. It is up to the applicant to provide all essential information to the Retirement Board for all creditable service.

January 19, 2011:BUYBACK POLICY

The policy of the Salem Contributory Retirement Board in regards to buybacks, makeup and veteran’s credit is as follows:

FOR MILITARY CREDIT: This payment is made, when necessary, as a lump sum payment before retirement by either a cash payment or from a deferred comp plan.

BUYBACK OF PREVIOUSREFUNDS: Lump sum payment at any time with interest.

MAKEUP FOR PREVIOUS SERVICE FOR WHICH NO DEDUCTIONS WERE EVER TAKEN: Lump sum payment at any time with interest.

All members are encouraged to make deductions to a deferred compensation plan so that their payments will be pretax.

The Retirement Board does not accept payment plans.

REGULAR COMPENSATION:

MISCELLANEOUS:

March 27, 2014: Correction of Errors under G.L. c. 32, 20(5)(c)(2)

In all cases of correction of an error by the Salem Retirement Board of an underpayment or non-payment of a pension or benefit to a member or beneficiary of the Salem Retirement System which results in a onetime retroactive payment of benefits, such payment shall include interest for such period of underpayment or non-payment at the rate annually determined for such period by the Public Employee Retirement Administration Commission pursuant to G.L. c. 32, § 22(6).

In all cases of correction of an error by the Salem Retirement Board of an overpayment of a pension or benefit to a member or beneficiary of the Salem Retirement System, the amount of overpayment shall be due from the member or beneficiary, along with interest for said period of overpayment at the rate annually determined by the Public Employee Retirement Administration Commission pursuant to G.L. c. 32, § 22(6).

Pursuant to the judgment of the Supreme Judicial Court in Herrick v. Essex Regional Retirement Board, 465 Mass. 801 (2013) and PERAC Memorandum #32, 2013, said interest shall be deemed to be the actuarial equivalent of the adjustment to the pension or benefit as set forth in G.L. c. 32, § 20(5)(c)(2).